Disney(DIS)2024-11-14 16:52Financial Data and Key Metrics Changes - The company expects high single-digit adjusted EPS growth in fiscal 2025, accelerating to double-digit adjusted EPS growth in fiscal 2026 and 2027 [9] - The company ended the quarter with 174 million Disney+ Core and Hulu subscriptions, with Disney+ having over 120 million core subscribers [14] Business Line Data and Key Metrics Changes - The Experiences segment continues to be the gold standard for the industry, with a targeted investment strategy designed to drive operating income growth [13] - The company reported strong performance in film, with top movies like Inside Out 2 and Deadpool & Wolverine contributing to box office success [11] Market Data and Key Metrics Changes - The company noted that linear advertising remains strong, particularly due to live sports, which provides a differentiated audience compared to streaming [28] - The company anticipates a gradual strengthening of consumer demand in the parks and experiences segment, particularly in the second half of the fiscal year [25] Company Strategy and Development Direction - The company is focused on integrating technology into its sports offerings, including personalized experiences and enhanced advertising capabilities [22] - The company plans to strengthen its streaming offerings with the introduction of an ESPN tile on Disney+ and a flagship DTC offering in early fall of 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustained growth and create shareholder value through its world-class portfolio of assets [17] - The management acknowledged challenges in the linear network but emphasized the strength of their streaming portfolio as a natural hedge against declines in linear viewership [61] Other Important Information - The company is cautious about investments in local content until technology improvements are realized to reduce churn [56][68] - The company has modeled in incremental growth in content spend, particularly in international markets, without significantly disrupting overall cash flow [57] Q&A Session Summary Question: ESPN flagship launch and its impact on customer experience - Management highlighted that the ESPN flagship will offer a highly personalized sports experience, integrating features like betting and AI-driven content [22] Question: Outlook on consolidated advertising growth - Management indicated that linear advertising remains strong, and the integration of ad tech capabilities provides a competitive advantage [30] Question: Content production and spending growth - Management stated that selective investments in international markets will be prioritized, focusing on markets outside the U.S. [55] Question: Impact of divestitures and international presence - Management expressed excitement about the deal with Reliance in India, indicating a continued presence with a percentage ownership [75] Question: Performance of domestic and international parks - Management noted a strengthening consumer sentiment in domestic parks while acknowledging temporary softness in international markets due to external factors [78]